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Merck (MRK) closed at $88 last trading session, marking a -1.65% move from the previous day. That move was narrower than the S&P 500’s 2.38% daily loss. Meanwhile, the Dow lost 1.94% and the Nasdaq, a technology-heavy index, lost 0.64%.

Prior to today’s session, shares of the pharmaceutical company had gained 0.33% in the past month. That was lower than the medical sector’s 1.41% gain and topped the S&P 500’s 0.07% loss during that time.

Wall Street will be looking for positivity from Merck as its next earnings report date nears. That is expected to be July 28, 2022. On that day, Merck is expected to report earnings of $1.69 per share, which would represent year-over-year growth of 29.01%. Meanwhile, Zacks’ consensus estimate for revenue calls for net sales of $13.85 billion, up 21.45% from the year-ago period.

For the full year, our Zacks consensus estimates call for earnings of $7.28 per share and revenue of $57.99 billion, which would represent swings of +20.93% and +15, 62%, respectively, compared to the previous year.

Any recent changes in analyst estimates for Merck should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term trading trends. With this in mind, we can view positive estimate revisions as a sign of optimism about the company’s business prospects.

Based on our research, we believe that these estimate revisions are directly related to the team’s close stock movements. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes into account these estimation changes and provides a clear and actionable scoring model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive track record of outperformance verified by external audits, with #1 stocks generating an average annual return of +25% since 1988 The Zacks Consensus EPS estimate has remained flat over the past month. Merck is currently a Zacks Rank #3 (Hold).

Digging into the valuation, Merck currently has a Forward P/E ratio of 12.29. Its industry sports an average Forward P/E of 13.36, so we could conclude that Merck is trading comparatively priced.

Meanwhile, MRK’s PEG ratio is currently 1.21. The PEG ratio is similar to the widely used P/E ratio, but this measure also takes into account the company’s expected earnings growth rate. MRK’s industry had an average PEG ratio of 2.28 at yesterday’s close.

The large-cap pharmaceutical industry is part of the medical sector. This group has a Zacks Industry ranking of 154, which places it in the bottom 40% of all 250+ industries.

The Zacks Industry Ranking assesses the strength of our industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

Be sure to use to track all of these stock movement metrics, and more, in future trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.